Jiangxi Special Electric Motor Co Ltd

Jiangte Motor released its 2026 interim report. Total operating revenue was 957 million yuan, down 1.87 percent year on year. Net profit attributable to the parent company was a loss of 213 million yuan, with the loss widening from a year earlier. Net cash inflow from operating activities was 92.99 million yuan. The asset-liability ratio was 48.91 percent, gross margin was 6.92 percent, and diluted earnings per share was a loss of 0.12 yuan.

Individual investor Wang Xin has officially become the de facto controller of Jiangte Motor and taken up the role of chairman, following nearly nine years of contrarian accumulation. Wang first appeared among the top ten tradable shareholders in the fourth quarter of 2017, holding 9.73 million shares. He continued buying as the stock price fell from around 12.89 yuan to a low of 1.25 yuan, and by the first quarter of 2025 his stake had reached 50.12 million shares. In July 2025, he paid 315 million yuan to acquire a 50 percent stake in Jiangxi Jiangte Industrial, becoming co-de facto controller through a transaction at the upper-level holding platform. However, after the stock resumed trading and hit its daily limit up at 8.12 yuan on 29 July 2025, it fell back to 7.99 yuan a year later, almost returning to square one. The company also expects a net loss of 180 million to 220 million yuan in the first half of 2026, with the lithium segment suffering from low capacity utilisation because its core mine has not been developed.

Jiangte Motor disclosed its earnings forecast, expecting a net loss attributable to shareholders of 180 million to 220 million yuan in the first half of 2026, compared with a loss of 114 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 80 million to 100 million yuan, compared with a loss of 161 million yuan a year earlier. The company said the main reason for the loss is that the core lithium mine Xikeng in the lithium segment has not yet been mined, and lithium ore raw materials are mainly purchased externally, resulting in insufficient capacity utilization and high unit production costs. In addition, the purchase price of externally sourced lithium ore is highly linked to the market price of lithium salts, limiting the profitability of the lithium salt business. The motor segment is operating steadily.

After dropping 5.73% on July 8, the lithium mining index fell another 2.9% on July 9, bringing the two-day cumulative decline to 8.46%. Compared with the recent high set on April 30, the index has now tumbled 37.83%. Industry experts say the sharp correction is the result of multiple bearish factors converging, including a shift in supply expectations, weakness in lithium carbonate futures, the realization of interim earnings positives, and institutional portfolio rebalancing. The most-active lithium carbonate futures contract fell 5.39% on July 9, and has dropped 27.09% from its May 13 peak. On the supply side, new capacity is being released in concentrated fashion, such as CATL's Jianxiawo mine obtaining a safety production permit and the commissioning of a large lithium processing plant in West Africa. This is coupled with slowing growth in new energy vehicle production and sales, creating a pattern of rising supply and weakening demand. Looking ahead, several experts expect short-term trading to be dominated by volatile consolidation, while the long-term certainty of lithium battery demand growth remains intact. The current pullback may present a strategic window for positioning in industry leaders.